The Bangko Sentral ng Pilipinas (BSP), still not offering 28-day term deposit facility (TDF) this week, received oversubscribed tenders of P518.88 billion versus offer of P490 billion.
The Wednesday auction for the 7-day tenor attracted P225.95 billion bids against a P220 billion offering while the average rate dropped to 1.8113 percent.
The bid coverage ratio was at 1.0271. The 14-day TDF, with more offering of P270 billion this week, received P292.92 billion tenders, and raised its yield to 1.9051 percent with a bid coverage ratio of 1.0849.
BSP Deputy Governor Francisco G. Dakila Jr. said there was still no volume offered in the 28-day TDF but had no explanation why. He did noted the continued oversubscription in both the 7-day and 14-day tenors, which “received 1.03x and 1.08x their respective offer volumes” and the total tenders of P518.88 billion is “in line with the BSP’s expectations.”
He said the results of the TDF auction indicate excess financial liquidity. The BSP also offers 28-day BSP bills every Friday. The 28-day TDF has been absent for the past two auctions.